Smart Hospitality Management Market Size, Share & Trends Analysis Report By Software (Hotel Building Automation System, Hotel Operation Management System, Guest Service Management System , Integrated Security System, Others), By Service (Professional Service, Managed Service), By Deployment Model (On-Premises, On-Demand), By Hotel Type (Business Hotel, Resorts and Spas, Heritage and Boutique Hotel, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global smart hospitality management market size was valued at USD 19.21 billion in 2023. It is estimated to reach USD 64.47 billion by 2032, growing at a CAGR of 14.4% during the forecast period (2024–2032). In recent years, with the advent of digitization, there has been a rapid proliferation of technologies like AI, IoT, ML, etc., in almost every sector. The hospitality industry is no exception. Integrating these technologies into the hospitality industry converts hotel buildings into smart hotels that help improve guest experience, driving the demand for smart hospitality management. Moreover, the major markets are launching new smart hospitality management solutions, creating opportunities for global market growth.

Smart Hospitality Management refers to applying advanced technologies and data-driven strategies to enhance various aspects of hospitality operations, including guest services, hotel management, marketing, and resource optimization. It involves leveraging IoT (Internet of Things), AI (Artificial Intelligence), data analytics, mobile apps, and other digital solutions to streamline operations, improve guest experiences, and increase efficiency and profitability.

Smart Hospitality Management aims to create a seamless and personalized experience for guests while optimizing operational processes and maximizing revenue for hoteliers. It is a response to modern travelers' evolving expectations and technology's increasing role in shaping the hospitality industry.

Highlights

• Hotel building automation system dominates the software segment
• Business hotel dominates the printing hotel type segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Smart Hospitality Management Market Drivers

Enhancement of Guest Experience

The incorporation of the Internet of Things (IoT), AI, and voice activation/recognition in the hospitality industry qualifies hotels as smart buildings, which form a key aspect of smart cities. In recent years, the increase in smart city implementation has led to a corresponding increase in smart hotel deployment to improve the guest experience. An Oracle Corporation survey called "Hotel 2025" found that 78% of hotel operators predicted that voice-activated controls for lights, air conditioning, and room equipment would be widely adopted by 2025.

Additionally, 59% of respondents indicated that utilizing a voice-activated device to manage room lighting and temperature would improve the guest experience. Hotels worldwide are using this smart technology in their establishments. For instance, in February 2020, the Fiesta Americana Viaducto Aeropuerto Hotel in Mexico City opened and provided guests with Enseo's advanced smart hotel room technology. Guests were introduced to a unique experience that included streaming entertainment choices and the ability to control their rooms remotely via mobile devices. The improved experience for guests is expected to boost the global market.

Global Smart Hospitality Management Market Restraint

Data Privacy and Security Concerns 

Data privacy and security issues are major obstacles to implementing smart hospitality management solutions effectively. The extensive gathering, retention, and examination of large quantities of guest data, which includes personal details and preferences, heightens the likelihood of data breaches and privacy infringements. Therefore, guests could hesitate to disclose critical information, including payment details or location data, if they feel a lack of trust or openness in handling their data.

Furthermore, hotels and hospitality businesses must comply with legislative standards like the European GDPR, which sets rigorous obligations for safeguarding visitor data. Inadequate data protection can lead to significant financial fines and harm one's image. Moreover, ensuring strong data privacy safeguards and security standards is crucial for building trust and addressing obstacles to adoption in the smart hospitality management market.

Global Smart Hospitality Management Market Opportunities

Launch of Novel Smart Hospitality Management Solutions

The major market players are introducing novel and more efficient smart hospitality management solutions. For instance, in July 2022, Software Development LLC unveiled three additional configurations for the Bodhi smart building management platform, i.e., Smart, Premium, and Luxury Hotel Room. The Bodhi Smart Hotel Room offers climate and lighting control, energy savings, keyless room entrance, leak and mold protection, and advanced management and amenities through the Bodhi Guest App accessed via a web browser.

Moreover, the Bodhi Premium Hotel Room integrates Crestron and Bodhi technology to incorporate Amazon Alexa management, Crestron lighting, shading, and climate systems into the Bodhi Guest App, along with Bodhi protection and savings features. The Bodhi Luxury Hotel Room features a Crestron touch panel and Alexa for easy management of lighting, shading, climate, and entertainment systems, along with Bodhi protection, savings, and the Bodhi Guest App. These factors present opportunities for market expansion.

Regional Analysis

North America Dominates the Global Market

Based on region, the global smart hospitality management market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global smart hospitality management market shareholder and is expected to expand substantially during the forecast period. The regional market expansion is expected to be propelled by technology improvements and the use of the Internet of Things (IoT) in the hospitality industry. Smartphones, smart appliances, and social media are other innovations that have had a favorable impact on the smart hospitality management sector. Moreover, there is a growing trend among market participants to introduce and integrate intelligent hospitality management solutions.

For instance, in November 2022, Phunware, Inc., a company that offers a comprehensive enterprise cloud platform for mobile devices, revealed the launch of its Smart Hospitality Solution at all Gaylord Hotels owned by Ryman Hospitality Properties, LLC and managed by Marriott International, Inc. Gaylord Hotels comprises five properties in Nashville, Tennessee; Kissimmee, Florida; Grapevine, Texas; National Harbor, Maryland; and Aurora, Colorado, with a total of 10,412 rooms. Based on total indoor meeting space, these properties rank among the top ten largest non-gaming convention center hotels in the United States.

Additionally, in September 2023, HotelIQ, a prominent global hospitality technology company and Oracle PartnerNetwork (OPN) member, declared that their business intelligence and analytics tool, Decision Cloud, is accessible on Oracle Cloud Marketplace. It can be implemented on Oracle Cloud Infrastructure and is compatible with OPERA Cloud Platform through Oracle Hospitality Integration Platform (OHIP). Hotels can now efficiently link HotelIQ Decision Cloud with OPERA Cloud, leading to quicker adoption and higher ROI. The Oracle Cloud Marketplace is a centralized repository of enterprise applications that Oracle and its partners provide. Therefore, these factors drive the growth of the regional market.

Asia-Pacific has become a popular choice for incentive travel, with places like Hong Kong and Singapore actively targeting this market for the last two decades due to its profitability. The Philippine Convention and Visitor Corporation estimates that incentive tourists spend an average of USD 1,200 and stay 5.6 days in the country, while incentive travelers spend approximately USD 2,500 in Singapore. This is expected to strain the hospitality industry, leading to a higher demand for smart hospitality management systems to efficiently oversee operations. Moreover, implementing innovative smart hospitality management solutions is propelling the market in the region.

For instance, in October 2023, DOWHAT, a Korean startup, is leading a Digital Transformation (DX) in the hotel and hospitality business with its unique cloud-based platform. DOWHAT establishes a new standard for comprehensive and smooth hospitality solutions by enabling intelligent hotel administration and customer service through a unified platform. DOWHAT serves many hospitality industries, such as hotels, postpartum care centers, luxury houses, offices, and other residential housing facilities. The platform is a digital tool that combines intelligent user experiences with operational efficiency, resulting in significant value for service providers and consumers.

Segmental Analysis

The global smart hospitality management market is bifurcated into software, services, deployment models, and hotel types.

Based on software, the global smart hospitality management market is bifurcated into hotel building automation systems, hotel operation management systems, guest service management systems, integrated security systems, and others. 

The hotel building automation system segment dominates the global market. A hotel building automation system is a comprehensive system designed to control and monitor various building systems and operations within a hotel, including HVAC, lighting, security, energy management, and more. The primary objective of a building automation system in a hotel setting is to enhance guest comfort, improve operational efficiency, reduce energy consumption, and ensure safety and security. Moreover, building automation systems typically consist of sensors, controllers, actuators, and a central management software platform that allows hotel staff to remotely monitor and control different building systems.

Based on services, the global smart hospitality management market is bifurcated into professional and managed services.

Managed hospitality services refer to the comprehensive management of various aspects of hospitality. These services typically include everything from hotel operations, such as housekeeping, front desk management, and maintenance, to food and beverage services, event management, and guest relations. Providers of managed hospitality services often offer a range of options customized to each client's specific needs, whether they are independent hotels, resort properties, or even larger hospitality chains. The segment is expected to grow with the highest CAGR as these services support the implementation of smart hospitality solutions across hotels.

Based on the deployment model, the global smart hospitality management market is bifurcated into on-premises and on-demand.

On-premises smart hospitality management refers to using technology and data analytics within a hospitality establishment, such as a hotel or resort, to enhance operations and guest experiences. Unlike cloud-based solutions, on-premises systems are installed and maintained directly within the property. On-premises smart hospitality management systems should incorporate robust security measures to protect guest information and prevent unauthorized access to hotel systems.

Based on hotel type, the global smart hospitality management market is divided into hotels, resorts and spas, heritage and boutique hotels, and others. 

The business hotel segment owns the highest market share. A business hotel is a type of hotel that caters primarily to business travelers. These hotels typically offer amenities and services geared towards business travelers' needs, such as conference rooms, meeting facilities, high-speed internet access, business centers, and other services like dry cleaning, room service, and transportation arrangements. Smart hospitality management is a widely integrated solution into business hotels as these hotels have highly esteemed and elite guests demanding the best experience.

Impact of covid-19

The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.

Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.

Recent Developments

• January 2024- Mews, a hospitality cloud provider, declared the acquisition of Frontdesk Anywhere, a cloud-based hotel management software startup located in San Francisco. Mews Ventures brokered the acquisition, which is its third in North America in less than a year. This action demonstrates Mews' ongoing commitment to investing and expanding in the region. The details of the acquisition have not been revealed.
• November 2023- Hudini, a developer of smart hospitality solutions, formed a strategic partnership with Sabre Corporation, a prominent software and technology provider for the worldwide travel sector. The collaboration seeks to combine Nuvola, Sabre Hotel’s task management and guest engagement solution, with Hudini’s extensive guest-facing platform for the hospitality sector.